Problem $2$

$(6$ points$)$

Portions of the financial statements for Frontline Company are provided below.

$\backslash$table$[[\backslash$table$[[$Frontline Company$],[$Income Statement$],[$For the Year Ended December $31,2023],[($$ in thousands$)]],],[$Revenues and gains:$],[$Sales$,$$$750,,],[$Gain on sale of building,$11,$$$761,],[$Expenses and loss:$],[$Cost of goods sold,$$275,,],[$Salaries$,115,,],[$Insurance$,35,,],[$Depreciation$,118,,],[$Interest expense,$45,,],[$Loss on sale of equipment,$13,601,],[\backslash$table$[[$Income before tax$],[$Income tax expense$]],,\backslash$table$[[160],[80]],],[$Net income,,$\frac{?}{\text{b}\text{a}\text{r}}($$$80),],[$lance Sheet,,$],[$Year$],[,2023,,2022],[$Interest payable,$2,2,4],[$Deferred tax liability,$70,,60],[$Income tax payable,$6,6,9],[$Bond discount,$185,,205]]$

Determine cash inflows$/($outflows$)$ from operating activities using the direct method

a$.$ Cash paid for interest $(3$ points$)$

b$.$ Cash paid for income tax $(3$ points$)$